For LPL Investors: Firm Fined $1 Million For Adviser Payments

Massachusetts securities regulators have fined LPL Financial $1 million over misrepresentations allegedly made to consumers by financial advisers who worked out of Digital Federal Credit Union branches, as well as payments received from DCU. The state accused LPL of not properly supervising its advisers, according to a recent consent order against it. DCU, the largest credit union in Massachusetts, allows LPL to conduct business in its branches in exchange for a cut of the concessions. The advisers did business as DCU Financial, and told customers that they were employees of the bank. One of the LPL advisers allegedly told an undercover regulatory that he was a DCU employee and that he did not receive commissions for his advice, when, he did. DCU advisers also received cash bonuses based on a sales contest without the authorization of LPL. The firm is supposed to review and approve compensation. Most recently, LPL paid $3.7 million in penalties in January related to allegedly fraudulent annuity sales to seniors and a $250,000 fine in 2015 for allegedly failing to supervise the state’s senior designation rule. Please call 312-332-4200 today if you were a customer with LPL and you suffered investment losses. Our attorneys are standing by to take your call and we take cases on a contingency fee basis so we only receive money if you recover yours. The call is free with no obligation.